eBay rejects GameStop $56 billion bid over financing doubts
Business
eBay just turned down a massive $56 billion buyout proposal from GameStop, which wanted to merge its around 1,600 US stores with eBay's platform.
The plan was meant to help eBay go head-to-head with Amazon, but eBay wasn't convinced, mainly because of doubts about how GameStop would actually pay for it.
Market experts question GameStop $12B valuation
Market experts quickly pointed out that GameStop is only valued at $12 billion, making the bid look risky.
Investor Michael Burry called the plan "pedestrian" and ditched his shares after the news, worried about all the debt and new stock involved.
Meanwhile, GameStop CEO Ryan Cohen still hopes to take the offer directly to eBay shareholders in the future.